The answer is a resounding YES – but be careful, you can also lose money by holding them.
The reason I bring it up here is that bonds may catch a bid here. And this could be an opportunity if you consider the use of leveraved bond etf or ultrashort bond etf.
Below is a chart of TLT etf – The 20 year tlt bond ETF. It has dropped over 18% from its highs in August to its current lows.
Lehman's 20 Year Bond ETF
In that same time, you could have owned etf TBT from around 30 and held it to over $40/share. ETF TBT is an inverse bond ETF, it goes up as bonds go down. Bonds go down as interest rates rise.
Taking it to another level, there are triple leveraged bond ETFs, TMF and TMV etf that are very popular to trade. For example, in that same period above, TMV etf went from around 31 to almost 50. That would have given you a return in the 60% range!!!
And that’s with bonds – did you ever think there would be a shorting bonds etf? I didn’t – and now look at it, you have a triple leveraged bond etf.
Need help timing the market and figuring out what bear bod ETFs to buy (or bond bear etf)?
We have a few ETF Trading Financial Newsletters that can help you and we offer $1 trials to get started.
Here is a link to our site:
Stock Market ETF Timing and Trading Newsletters
